Sunday, September 24, 2017

Unpacking the Fact Finders Report For the Marion Cross Teachers Contract - Part I

Part I of II

Here is my summary of the Fact Finders Report discussed some on the listserv. 
I broke my summary into two parts to avoid an extremely long listserv post.  
The Fact Finders Report is an important document regarding the labor impasse 
between the Norwich Teachers Association and the Norwich School District. 
Note that this collective bargaining dispute involves only the Marion Cross 
School, its 296 students and 35 teachers. 

In all, the Norwich Fact Finding Report And Recommendations (“Report”) 
addressed five issues, with Issue Number 3 and Number 4 being the big ticket 
items of salary increases and health insurance. This Part I addresses those 
big ticket items. 

With respect to salary increases, the School District offered “new money” 
increases of 2.2% and 2.16% in years one and two respectively, arguing that 
the the Consumer Price Index has “averaged between 1.0% and 1.4% over the 
past eight years.” Report at 10. The Teachers proposal amounted to 3.85% in 
“new money in year 1, 3.56% new money in year 2, and 3.46% new money in year 
3.” Report at 11. From context, I assume the term “new money” includes the 
step increases teachers receive each year.  

The Fact Finder recommended a two-year contract with “new money” increases in 
salary of 3% in 2017 and 2018. He stated that 3% was the average salary 
increase in “recent teacher settlements” and acknowledged that salaries for 
Norwich teachers are at the “top tier of teachers statewide”. Report at 12. 
Early in the Report, the Fact Finder observed that Norwich had the highest 
education tax rate in Windsor County. Report at 13. In his analysis, he 
concluded that no “unusual economic pressures” hindered the School District 
ability to increase wages. Report at 13

For health insurance, the Fact Finder agreed with the School’s proposal that 
teachers pay 15% of premiums in year 1 and 16% in year 2. Report at 20. On 
the issue of the out-of-pocket maximum, he sought protection for teachers and 
recommended $400 for individual plan and $1200 for the family plan, reasoning 
that the School would still save about $24,000 or more, even after the 
penalty imposed by the State. Report at 22-23.

The penalty arises from recent Vermont legislation. The law assumes that 
teachers will pay 20% of health insurance costs. State funds are withheld 
from school districts based on this assumption. Report at 4. School districts 
that pay more than 80% in essence lose state funding. Under the Report’s 
recommendation, Norwich will lose over $56,000 in state funds. Report at 21.

In the news lately is the settlement that Burlington reached with its 
teachers, after a four-day strike. The WCAX website reports that the new 
contract gives teachers a 2.5 percent pay boost in the first year, and a 2.75 
percent increase the second. Teachers will pay 19% of health insurance 
premiums in year one and 20% in year two. The out-of-pocket limit is a 
maximum of $800.

Onward to Part II. 

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